Outlook remains positive for private general insurers despite modest growth

Despite modest growth in the non-life insurance sector in July 2025, key segments like motor and fire insurance showed strength, while health faced challenges.

In July 2025, the non-life insurance sector (excluding health) saw collections totalling ₹29,729.8 crore, just 2.4 per cent increase year-on-year (Y-o-Y) compared to 9.3 per cent Y-o-Y rise in July 2024. Growth was 2.8 per cent if health is included.

 

A sizeable proportion of the 2.4 per cent growth was in motor and fire segments, which accounted for over 70 per cent of non-life, excluding health.

 

However, numbers may not always be directly comparable given the transition to 1/n method of calculation for long-term policies which different insurers started applying at different times.

 

The 1/n method reduces the upfront value